Testing the Impact of Value-Added and Global Income Tax Reforms on Korean Tax Incidence in 1976: An Input-Output and Sensitivity Analysis (Determination de l'effet des reformes fiscales (impot general sur le revenu et taxe a la valeur ajoutee) sur la pression fiscale en Coree en 1976: analyse entreessorties et analyse de sensibilite) (Comprobacion del efecto que las reformas tributarias del impuesto al valor agregado y el impuesto general sobre la renta tuvieron en la incidencia fiscal de Corea en 1976: Analisis de insumo-producto y de sensibilidad)

1981 ◽  
Vol 28 (2) ◽  
pp. 375 ◽  
Author(s):  
Peter S. Heller
Keyword(s):  
Sensitivity Analysis ◽  
Income Tax ◽  
Value Added ◽  
Tax Incidence ◽  
Input Output ◽  
Tax Reforms ◽  
The Impact ◽  
Analysis Determination

scholarly journals Sensitivity analysis of Economic Value Added as a dominant indicator of concept of economic profit

2021 ◽  
Vol 129 ◽  
pp. 03014
Author(s):  
Dusan Karpac ◽  
Viera Bartosova
Keyword(s):  
Sensitivity Analysis ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Financial Status ◽  
Economic Profit ◽  
Methods Of Synthesis ◽  
The Difference ◽  
Individual Variables ◽  
The Impact

Research background: The modern goal of enterprises, value creation, is achieved through the concept of economic profit. Profit, as part of profit or loss, is one of the most important flows, pointing to how efficiently corporate capital is used in an entity (Coatney & Poliak, 2020). The article deals with the difference between accounting and economic profit, the selected form of economic profit - the EVA indicator. The economic value added (EVA) indicator is one of the best-known modern indicators of a company's performance (Siekelova et al., 2019). It shows whether the given entity increases its value or only earns for its economic survival. The benefit of this indicator is the valuation of equity and taking into account the risk. It is difficult to express the economic profit itself, therefore the article also addresses the issue of its calculation (Shah et al., 2016). The company needs to know its financial status and the direction it is heading, so we decided to calculate a selected form of economic profit. Purpose of the article: The company needs to know its financial status and the direction it is heading, so we decided to calculate a selected form of economic profit. When expressing the value of the economic value added indicator, it is also important to know the items and components of the calculation that have the strongest meaning and effect on the possible amount of the indicator. Given this, we decided to use a sensitivity analysis, which points to the effect of individual variables that participate in the construction of the EVA calculation. Methods: In this work, the methods of induction, deduction, and comparison were used to obtain a true picture of the subject issue. Methods of synthesis and analysis of the researched issues were also used. Findings & Value added: In the paper there is pointed out the intensity of the impact of individual variables that entered into the calculation of the economic value added indicator as a dominant indicator of concept of economic profit.

scholarly journals Effect of Corporate Tax on Government Expenditure in Nigeria

2021 ◽  
Vol 1 (5) ◽  
pp. 157-171
Author(s):  
Patrick Ologbenla
Keyword(s):  
Income Tax ◽  
Consumer Price Index ◽  
Government Expenditure ◽  
Value Added ◽  
Corporate Income Tax ◽  
Value Added Tax ◽  
Independent Variable ◽  
The Government ◽  
The Impact ◽  
Bound Test

The study investigated the impact of corporate income tax on the government expenditure in Nigeria. Data on corporate income tax, value added tax, interest rate, gross domestic product, petroleum profit tax and consumer price index were collected and used as independent variable in the study while data on public expenditure were collected and used as independent variable in the estimated model. The ARDL bound test was applied and the result showed that corporate income tax have long run relationship that is significant with government expenditure. Other forms of tax such as value added tax and petroleum profit tax also have significant impact on government expenditure. The study concluded that corporate income tax should be sustained in order to ensure that government continue to fulfill her obligation of provision of social amenities that will promote the economic growth of the country.

scholarly journals Professional Opinions And Attitudes On Tax Policy In Bosnia And Herzegovina With A Special Focus On The Federation Of Bosnia And Herzegovina

2015 ◽  
Vol 10 (2) ◽  
pp. 29-44 ◽  
Author(s):  
Lejla Lazović-Pita ◽  
Ana Štambuk
Keyword(s):  
Bosnia And Herzegovina ◽  
Tax Policy ◽  
Income Tax ◽  
Value Added ◽  
Special Focus ◽  
Tax Reforms ◽  
Tax Base ◽  
Excise Duty ◽  
Efficiency Principle ◽  
Definition Of

Abstract This research is based on tax policy opinion survey data collected in Bosnia and Herzegovina (B&H) among tax experts. A special focus of the survey was to investigate the consequences of the different institutional environments that exist between the two entities of the country. After having reviewed all previous tax reforms in B&H, the most interesting results suggest that respondents agree on the introduction of a progressive personal income tax (PIT) and excise duty on luxury products, the maintenance of personal and family allowances and the maintenance of the current value added tax (VAT) and corporate income tax (CIT) rates. However, differences exist in the respondents’ perceptions about the introduction of reduced VAT rates, the regressivity of the VAT, and giving priority to the equity principle over the efficiency principle in taxation. Probability modelling highlighted these differences and indicated inconsistencies in the definition of the PIT tax base, namely the comprehensiveness of the PIT base under the S-H-S definition of income.

scholarly journals Tax Revenue, Tax Reform and Government Expenditure: The Case of Nigerian Economy (1994 – 2017)

2020 ◽  
pp. 1-12
Author(s):  
Chinedu Jonathan Ndubuisi ◽  
Onyekachi Louis Ezeokwelume ◽  
Ruth Onyinyechi Maduka
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Government Expenditure ◽  
Value Added ◽  
Series Data ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Tax Reforms ◽  
Level Of Significance ◽  
Excise Duties

The objective of this study is to empirically investigate the effect of tax revenue and years tax reforms on government expenditure in Nigerian. Tax revenue were explained using custom and excise duties, company income tax, value-added tax and tax reforms explained by the years in which reforms took place measured by dummy variables as proxies. In conducting this research, an annual time series data from central bank statistical bulletins and Federal Inland revenue Service of Nigeria spanning from 1994-2017 were employed. The data were tested for stationarity using the Augmented Dicker-Fuller Unit Root Test and found stationary at first difference. The Johansen co-integration test was also conducted and showed that the variables are co-integrated at the 5% level, which implied that there is a long-run relationship between the variables in the model. The presence of co-integration spurred the use of vector error correction model and VEC granger causality to determine the effects and decision for the study objective. Findings revealed that Customs and Excise Duties has positive (3.96) and significant (-8.38) impact on government expenditure at 5% level of significance (t=8.38>1.96), Company Income Tax has negative (-1.25) and significant (2.98) impact on government expenditure at 5% level of significance (t=2.98>1.96), Value added tax has positive (8.54) and significant (3.90) impact on government expenditure at 5% level of significance (t=3.90>1.96) and Tax reforms periods has negative(-3.52E+12) and significant (8.39) impact on government expenditure at 5% level of significance (t=8.39>1.96). The study thus concluded that tax revenue and tax reforms significantly affect the Nigerian economy with the direction of causation running from government revenue to government expenditure, supporting the revenue-spend or tax-spend hypothesis.  It was recommended while seeking to increase its revenue base via tax should also increase their expenditure profile to create a balance with the tax revenue and every other tax reform should be geared towards this balance.

The Impact of Covid-19 and Lockdown on South African Revenue

2020 ◽  
pp. 1-7
Author(s):  
Mangalani Peter Makananisa ◽  
Keyword(s):  
South African ◽  
Income Tax ◽  
Critical Role ◽  
Value Added ◽  
Fiscal Year ◽  
Personal Income Tax ◽  
State Revenue ◽  
Regression Parameters ◽  
Sample Data ◽  
The Impact

The state revenue plays a critical role in the running of its departments and plays a significant role in the economy. The study investigates the impact of COVID-19 and the lockdown on the South African revenue collections. The study focuses on the major taxes Personal Income Tax (PIT), Corporate Income Tax (CIT) and Value Added Tax (VAT). Over the fiscal year 2008/09 to 2019/20 the three taxes contribute around 80% of the Total Tax (TTAX). The sample data was from quarter 1, 2014 to quarter 2, 2020 (50 observations) obtained with quarter 2 of 2020 carrying the impact of the pandemic. The SARIMA and Holt-Winters models were used to forecast the continuation of the historical patterns in two scenarios, (1.) Without the impact of the COVID-19 pandemic (No shock), and (2.) with the impact of COVID-19 and lockdown (with a shock) on the revenue collections. The R-statistical software was used to obtain the regression parameters and for forecasting purposes. On “average”, the impact of the pandemic is expected to reduce total revenue by around R310.6bn to R1, 127 trillion (on the interval R1, 093 – R1, 162 trillion) from the original estimates of R1, 438 trillion for the fiscal year 2020/21. The average forecast for PIT, CIT and VAT due to the impact of the pandemic is R532.9billion, R172.6billion and R320.9billion respectively. The study further encourages model revision as more data impacted by the pandemic become available

scholarly journals TRANSMISI DAMPAK MELALUI JARINGAN PERDAGANGAN: PENDEKATAN ASIAN-IO

2014 ◽  
Vol 16 (4) ◽  
pp. 339-372
Author(s):  
Ibrahim Ibrahim ◽  
Tri Winarno ◽  
Melva Viva Grace ◽  
Yan Fitri
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Value Added ◽  
Jel Classification ◽  
Input Output ◽  
Asian Countries ◽  
Production Chain ◽  
The Us ◽  
Similar Point ◽  
The Impact

Global financial crisis which began in the US in the latter part of 2008 hit a lot of countries in both trade and finance. In trade aspect, the crisis spread widely; in Indonesia, the total export value in 2009 dropped to 14,3%. Therefore, the economy of China, tightly linked with Asian countries including Indonesia, which rapidly rose before the crisis but slowed after it should be monitored as this condition, could indirectly hold down Indonesia’s GDP. Applying RAS method to update Asian IO data, this research has attempted to describe the trade structure of Asian countries in 2010. Also, it implemented a simulation of the impact of US and China’s GDP decline and US exports on Indonesia’s GDP, both at aggregate and sector levels. The result of the mapping shows that Indonesia is getting more dependent on China. Generally, the link between Indonesia’s exported products and global production chain is weak. Indonesia’s export commodities which are mostly of intermediate goods have low contribution towards value added. Moreover, the result of the simulation shows that 1% decrease in China’s GDP has greater impact on Indonesia’s GDP (0,14%) than that of the US (0,05%) and EU (0,07%) though with similar point.  Keyword: Trade Interactions, Input Output Model JEL Classification : F16, R15

scholarly journals Underground economy and GDP growth: Evidence from China’s tax reforms

2021 ◽  
Vol 7 (1) ◽  
pp. 87-107
Author(s):  
Yu kun Wang ◽  
◽  
Zhang Li ◽  
Keyword(s):  
Local Governments ◽  
Tax Reform ◽  
Value Added ◽  
Underground Economy ◽  
Gdp Growth ◽  
National Bureau ◽  
Tax Reforms ◽  
Effect Change ◽  
Tax Rate ◽  
The Impact

Since 1991, China has implemented two significant tax reforms. The first reform, in 1994, was a large-scale adjustment of the tax distribution system between the central and local governments, and the second reform, in 2012, replaced business tax with value-added tax. Also, the size of China’s underground economy decreased from 13.55% in 1995 to 12.30% in 2016. The paper presents an evaluation of the effect of the two tax reforms and the existing underground economy on GDP growth in China. GDP is defined as explained variable, the explanatory variables include: the ratio of declared income to actual income, the change of concealed income, and the influence of tax rate change on declared income and concealed income. According to the tax reform in 1994 and 2012, two dummy variables are set respectively. In methodology, this paper uses Simultaneous equations model, SUR-OLSs and Slutsky identity. Our estimation is based on the official statistics of China National Bureau of Statistics in the period from 1991 to 2019. In empirical analysis, we decomposed tax changes into tax rate effect (change of budget constraint slope) and income effect (change of tax liability), then analyzed the impact of tax elasticity on GDP growth. The empirical results demonstrate that both the 1994 tax reform and 2012 tax reform have had a positive impact on GDP, with high statistical significance respectively. The results also confirm that the increase of tax rate leads to the increase of hidden income, which eventually leads to the decrease of GDP. The offered methodology can also be applied to most countries for time series analyses.

scholarly journals Potential Tax Reforms and Kuwait Economic Growth

2019 ◽  
pp. 42-48
Author(s):  
K. Lawler ◽  
F. Ali Al-Sayegh
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Value Added ◽  
Least Square ◽  
Series Data ◽  
Tax Reforms ◽  
Tax Revenues ◽  
Oil Revenue ◽  
The Impact

The objective of this study is to identify whether tax reforms are viable in Kuwait in order to create more government income from sources other than oil. The study examines the relationship between the changes in tax revenues, changes in oil revenue and changes in GDP in Kuwait using time series data from 1998 to 2015. The Augmented Dickey-Fuller (ADF) is used to check for the existence of a unit root. The cointegration test is applied to test for long term relationships between variables using the General Least Square (GLS) method of estimation. The results of the tests find that the impact of changes in tax revenues on changes in the GDP of Kuwait is insignificant. Therefore, Kuwait’s government could rationally implement tax reforms to have incremental sources of income other than oil revenue. Moreover, it is argued that the government might consider implementing broad based consumption taxes and value added taxes into the tax structure Kuwait, and to invest the revenues from those taxes in productive policies, to induce long term economic growth.

scholarly journals PENGARUH KRISIS EKONOMI AMERIKA SERIKAT TERHADAP BURSA SAHAM DAN PERDAGANGAN INDONESIA

2013 ◽  
Vol 15 (3) ◽  
pp. 89-103
Author(s):  
Mita Nezky
Keyword(s):  
Stock Market ◽  
Income Tax ◽  
Stock Price ◽  
Value Added ◽  
Vector Autoregressive ◽  
Production Index ◽  
Svar Model ◽  
Dow Jones Industrial Average ◽  
The Us ◽  
The Impact

This paper analyzes the impact of the financial crisis in United States 2008 on Indonesia’s economy, by using Structural Vector Autoregressive (SVAR) model of 5 variables; Dow Jones Industrial Average, exchange rate, composite stock price index (IHSG), production index and trade tax income. The result shows that the US crisis affects the capital market in Indonesia where the Dow Jones Industrial Average plays greater role in explaining the IHSG, compared to Rupiah rate, production index and the trade income tax. In addition, the US crisis affects the volume and the trade income tax in Indonesia. These empirical results bring policy implication for Bappepam-LK as stock market regulator to intervene or to suspend the trade when the volatility exceeds the psychological threshold. It also emphasizes the necessity to diversify the export country destination and to increase the quality and the value added of Indonesian export.Keywords : US Crisis, stock market, trade, SVAR.JEL Classification : G18

scholarly journals Impact of pharmaceutical companies upon the economy and public finance in Poland: The Sanofi case study

2019 ◽  
pp. 113-123
Author(s):  
Ewelina Nojszewska
Keyword(s):  
Public Finance ◽  
Negative Impact ◽  
Positive Impact ◽  
Value Added ◽  
Industrial Sector ◽  
Pharmaceutical Products ◽  
Pharmaceutical Companies ◽  
Input Output ◽  
The Impact

The paper discusses a two-channel impact of pharmaceutical companies upon the economy and public finance. Firstly, pharmaceutical companies predominantly impact the net value added, employment, income of people employed by their suppliers and customers as well as public finance revenue in the countries where they are based. The mechanisms of such an influence are presented in the input-output matrix (input-output analysis) that shows how output from one industrial sector in the economy may become an input to another industrial sector. The input-output model was developed by Leontief and earned him the Nobel Prize. This kind of influence upon the Polish economy has been illustrated with the case study of the Sanofi company. Secondly, pharmaceutical products improve the effectiveness of medical treatment, by which they contribute to the higher standard of living and economic growth.In this part of investigation into the impact of pharmaceutical companies upon the economy the key method consists in calculating indirect costs, that is, the lost productivity (lost GDP). Non-generated GDP as well as the negative impact of diseases and the treatment thereof on public finance can be significantly reduced by using more effective pharmaceutical products. This second channel through which pharmaceutical companies exert influence on the economy has been illustrated with an example of economic consequences calculated from the social viewpoint for three gynaecological–oncology diseases. Our calculations for both channels in this exercise have led us to conclude that a pharmaceutical company positively influences its business partners and the economy while by improving the health of the population it exerts a positive impact upon the economy and public finance.

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